Conrad Asia Energy (ASX:CRD) completed the farm-down of its 75% non-operated participating interest in the Duyung production sharing contract in Indonesia to PT Nations Natuna Barat, according to a Thursday filing with the Australian bourse.

The completion triggered the payment of $4 million from PT Nations, representing the second tranche of the cash consideration of $16 million, per the filing.

The first tranche of $5 million was received in March, and the third tranche of $7 million is payable at the start of commercial production. The remainder of the acquisition consideration will be paid through production revenue until 75% of past costs have been recovered.

Conrad Asia Energy said it is now fully funded for the $320 million development of the Mako gas project, which is housed within the Duyung production sharing contract. The company will hold a roughly 22.9% operated participating interest in the Duyung PSC via its interests in WNEL Holdings.